- No Decrease in Property Rates. Hurricane Sandy is causing large property insurance companies to raise rates. APEI’s good property loss history in recent years should allow us to keep our rates stable. Though rates will probably be stable, we expect increased member property values which will mean increased premiums.
- Flat Liability and Auto Rates. APEI members continue to have good loss experience in these lines of business. Consequently overall rates should remain the same. However, variances among individual members’ loss experiences will mean varying premiums, as loss history is the most significant factor in calculating liability and workers’ compensation premiums.
- Higher Medical Costs Mean Higher Workers’ Compensation Rates. We are anticipating workers’ compensation rate increase of as much as 10% program-wide, due to ever-increasing medical costs for these claims. We continue to push for constructive legislative reforms to address this problem, but no bills have been introduced to date. If you have the chance, please encourage your legislators to consider changes to the workers’ compensation system to bring medical fees under control.
In the coming months, APEI will be working with excess and reinsurers to put together the best possible program for our members. We will also be working with your brokers to gather the necessary information to develop quotes as quickly and efficiently as possible. Our reinsurers require complete and accurate underwriting information, so please pay careful attention to detail in your applications. Thanks.